What is Hong Kong BUD? What Can BUD Do for You?

    Hong Kong BUD

     Officially known as the "Dedicated Fund on Branding, Upgrading and Domestic Sales" (BUD Fund), it is a major support policy launched by the Hong Kong SAR Government in June 2012, serving as a "golden booster" for Hong Kong enterprises to expand their markets. This fund is specifically designed for non-listed Hong Kong enterprises, aiming to help businesses develop brands, upgrade operations, and innovate business models to expand into mainland China and 39 economies that have signed Free Trade Agreements and Investment Agreements with Hong Kong. These markets cover a wide range, from the vibrant emerging business environments of the 10 ASEAN countries, to the vast consumer market of mainland China, and to mature economies such as Japan, South Korea, and Australia.

    Funding Scope

     The Government will cover 25% of total project costs, reducing financial pressure on enterprises. Up to 70 projects can be applied for, with a maximum subsidy of HK$800,000 per project, sufficient to support enterprises in carrying out large-scale brand promotion and technology upgrade projects. The cumulative subsidy cap per enterprise is as high as HK$7 million, providing solid financial backing for long-term development and market expansion. Whether a startup looking to build market awareness or an established enterprise seeking transformation and expansion into new markets, the BUD subsidy can be a key enabler.

    Eligibility

Company Registration and Operations:

1. Must be a non-listed enterprise registered in Hong Kong under the Business Registration Ordinance (Cap. 310). Listed companies, financial institutions, state-owned enterprises, and insurance institutions are not eligible.

2. The company must have been established for at least 1 year, based on the incorporation date on the Business Registration Certificate.

3. Must have substantive business operations in Hong Kong, specifically:

4. Must have actual office premises (provide lease agreement, recommended to have been rented for 6+ months), pay stamp duty, no specific area requirement; provide monthly utility bills proving normal use of premises.

5. At least 1 employee with MPF contributions for 3+ months; submit MPF contribution statements as proof.

6. Maintain proper financial records; provide latest audit report. Some suggest company revenue of at least HK$2.5 million with 3%+ net profit; others indicate annual turnover of HK$1 million+ (as shown in financial audit report) may be sufficient for assessment.

    Equity Requirements (if involving mainland business): Must meet ANY of the following conditions

1. Hong Kong company shareholders hold 50%+ equity of the mainland associated company.

2. The same individual holds 30%+ equity of the Hong Kong company AND 50%+ equity of the mainland company.

3. The Hong Kong and mainland companies are 100% owned by the same group of shareholders.

    Application Process

Step 1: Project Application (approximately 1 month)

Prepare application materials:

1. Completed and signed application form, with an MS Word format software copy. The form must detail the applicant company's information and the proposed project content, including objectives, implementation methods, timeline, budget, expected outcomes, and anticipated benefits for the enterprise and Hong Kong's economy.

2. Copy of the company's Business Registration Certificate and Certificate of Incorporation.

3. Copies of identity documents of persons/shareholders holding 30% or more ownership.

4. Copies of documents proving the applicant enterprise has substantive business operations in Hong Kong, such as business operation receipts, office environment photos, office building signage, MPF contribution records, salary expenditure records, income and expenditure proof for the past 3 months (such as company invoices or receipts, lease copies, utility bills, bank transaction records, inventory purchase or sales records), audited annual accounts, bank statements for the past 3 months, etc.

5. Copy of proof of the applicant enterprise's total turnover for the previous year (typically the financial audit report).

6. Copy of proof of direct investment relationship between the applicant enterprise and the mainland business unit responsible for executing the project (if mainland business is involved).

7. Promotional materials/brochures introducing the applicant enterprise's business/products/services.

8. Submit the above materials and await Hong Kong Government review.

Step 2: Government Result Notification (approximately 3 months):

1. The Hong Kong Government will conduct a preliminary review of submitted materials to ensure all necessary documents are complete.

2. Then evaluate based on project feasibility, innovation, expected benefits, and other factors. During the evaluation process, there may be multiple communications and meetings with the project coordinator, requiring additional supplementary materials.

Final approval results have three possible outcomes:

1. Successful Approval: The entire project meets the BUD Fund requirements, and the enterprise can proceed with the originally submitted project plan.

2. Conditional Approval: The project generally meets the requirements, but the enterprise needs to fulfill additional conditions within a specified time frame to formally obtain approval. Common conditions include submitting business license proof, trademark registration success notice, providing specific licenses, etc. These conditions will be detailed in the notification email attachment.

3. Application Rejected: If the project fails to pass approval, the enterprise may consider modifying the project plan based on the review comments, or seek professional consultants' assistance to meet the requirements and resubmit.

Step 3: Sign Funding Agreement (approximately 1 month):

Once the application is approved, the enterprise must sign a funding agreement with the Hong Kong Government. The agreement will specify the terms and conditions of the funding, including the subsidy amount, fund usage regulations, project execution requirements, etc.

Step 4: First Installment (approximately 1 month):

After signing the agreement, the enterprise can receive the first installment within 1 month, typically 25% of the total funding amount.

Step 5: Project Implementation to Acceptance (approximately 12 months):

1. The enterprise carries out the project according to the signed agreement and project plan. During project execution, regular progress reports must be submitted to the Hong Kong Government, including financial reports and work progress.

2. Upon project completion, a project completion report must be submitted, and an audit may be required. The report must detail the project's outcomes, expenditures, and actual effects.

Step 6: Final Payment (approximately 1 month)

After the project passes acceptance, the Hong Kong Government will disburse the final payment within 1 month, typically 75% of the total funding amount.

    How to Apply

    Shenzhen Qianhai Gangchuang Consulting Co., Ltd.

Gangchuang Consulting is a professional firm deeply engaged in business agency services, with a wide range of services covering company registration, bookkeeping, business registration processing, and many other core businesses. Especially in policy subsidy applications, the company focuses on Hong Kong enterprises, leveraging deep insights into Hong Kong's local policies and market to provide quality services. Whether for domestic or Hong Kong subsidy applications, we accurately grasp policy key points to help enterprises unlock policy dividends.

The company gathers policy experts, financial professionals, and legal specialists to form a professional team, creating customized service plans for enterprises. From qualification assessment and document preparation to application submission, we provide full-process agency services, ensuring enterprises efficiently secure subsidy opportunities. With rich practical experience, Gangchuang Consulting maintains a high approval rate, having successfully helped 100+ enterprises across manufacturing, cross-border e-commerce, and other industries secure million-level subsidies, helping enterprises achieve equipment upgrades and market expansion. We are a reliable partner for enterprises seeking policy support.

If you are planning a business roadmap or seeking to expand your business territory, the Hong Kong BUD subsidy policy is undoubtedly a "golden opportunity" not to be missed! This special support program launched by the SAR Government provides up to million-level financial support. Whether for brand upgrading, technological innovation, or cross-border market expansion, it can inject strong momentum into your enterprise. Gangchuang Consulting, deeply rooted in the policy service field, has a professional team tracking BUD policy developments in real-time, providing full-process customized services from qualification assessment and document application to fund collection, helping you accurately secure subsidy opportunities and seize development advantages.

Moreover, Gangchuang Consulting's services cover diverse areas including company registration, bookkeeping, and business registration processing. Whether you want to apply for policy subsidies or have other business agency needs, we can leverage our rich experience and professional capabilities to provide one-stop solutions for your challenges, safeguarding your career development. Contact us now to start an efficient and worry-free collaboration!